General Assumptions:
1. The Reds will spend only up to an allocated budget numbers, probably somewhere between $80-90 million.
2. The Red budget without Phillips (assuming Cordero payout) is just over $50 million.
3. As of now, assuming no deals, Cincinnati has at last six likely arb eligible players (Masset, Janish, Arredondo, Bray, Volquez, and Bailey), which would raise payroll at least $6 million total.
4. Cincinnati needs at least one TOR starter and a big hitter to bat cleanup.
5. The Reds have five hitters best suited to hit either sixth or seventh in the lineup, in Phillips, Bruce, Heisey/Alonso, Stubbs, and Mesoraco/Hanigan/Hernandez.
6. Cincinnati needs a leadoff hitter with very good on-base percentage.
7. Lesser free agents, such as Kelly Johnson, Omar Infante, and Freddy Sanchez, will be cheaper and almost as productive.
8. Possible converted SS (or converting Cozart to 2B and adding a free agent SS) free agents are Jose Reyes, Rafael Furcal, Orlanda Cabrera, Jimmy Rollins, and Marco Scutaro. All but Reyes profiles to be much, much cheaper than Phillips.
9. Trading Phillips would provide valuable prospects.
10. Teams needing a 2B like Phillips to improve their team at the deadline include: San Francisco, Chicago (AL) (w/ Beckham moving to 3B), Detroit, Cleveland, Atlanta, St. Louis (hehe), and Pittsburgh (w/ Walker moving to 3B).

An example:
Reds dump Phillips to Chicago (AL) for Christian Marrero and Addison Reid. Reds sign Rafael Furcal to a two-year, $14 million contract to play SS and move Zack Cozart to 2B, with Miguel Cairo as backup.

Red lineup (assuming no deals for TOR starter or cleanup hitter):
Furcal SS
Cozart 2B
Votto 1B
Mesoraco C
Bruce RF
Rolen/ Frazier 3B
Alonso/ Heisey platoon LF
Stubbs CF